|
Consulting |
Abbreviations |
Search |
Maryland PSC Opens Investigation of Licensing Independent Contractors, Other Channels
Email
This Story
November 9, 2010
The Maryland PSC has initiated a proceeding (Case 9245) to consider whether persons (companies or individuals) selling electricity or gas on behalf of electricity and gas brokers or suppliers licensed in Maryland, but not directly employed by the licensed brokers or suppliers, should be regarded as brokers themselves and required to obtain an electricity or gas supplier license from the Commission.
As only reported by Matters, Staff has been conducting an investigation of supplier sales channels, directing suppliers to provide a list of all entities with which the supplier has contracted, or to whom the supplier otherwise pays compensation, for the purpose of obtaining or soliciting customers (6/29). Additionally, the issue of what entities and persons require a license has come up with respect to network marketing as well as affinity groups (6/3). The applications of Utility Choice International for broker licenses have been held up due questions over whether independent representatives under network marketing require a license (9/30).
Staff determined that, in Maryland, 23 different electricity suppliers have entered
into over 300 contractual relationships with 202 different counterparties. These
counterparties, according to Staff, range in type from traditional brokers, to door-
While Staff indicated that it was not always able to make a clear distinction between
the various types of vendors/agents, Staff roughly categorized the counterparties
into three types: brokers; sales representatives (defined as agents who carry out
a marketing or telemarketing campaign designed for or by the underlying electricity
supplier); and non-
Further, Staff asserted that 202 distinct marketing counterparties have signed contracts
with electricity suppliers. Staff's initial analysis of contractual language and
guidance from suppliers indicated that 169 act solely as brokers; 9 act solely as
sales representatives; 18 act as non-
"Although the Commission has issued a substantial number of supplier licenses to electricity and gas brokers, the relevant provisions of the PUA and the Commission's regulations do not clearly delineate which parties in the sales chains need to have their own supplier license," the Commission said.
"As questions have arisen during consideration of applications for electricity and gas supplier licenses at the Commission's Administrative Meetings as to the marketing practices of the applicants, the Commission finds that addressing these issues would enable Staff and market participants to better determine which parties in a given transaction are required to have a supplier license, and reduce the likelihood of unknowing violations of the licensing requirement."
Initially, the Commission asked for responses to the following questions:
1. Should sales representatives and non-
2. If there are circumstances or conditions that would warrant licensing of some
sales representatives and non-
Responses are due December 10.
Copyright 2010 Energy Choice Matters. If you wish to share this story, please email or post the website link; unauthorized copying, retransmission, or republication prohibited.
Be Seen By Energy Professionals in Retail and Wholesale Marketing
Run Ads with Energy Choice Matters
Call Paul Ring
954-
|
Consulting |
Abbreviations |
Search |
